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7. INCOME TAXES
 9 Months Ended
Sep. 30, 2012
Income Tax, Policy [Policy Text Block]
7. INCOME TAXES

We file income tax returns in the U.S. Federal jurisdiction and various state and foreign jurisdictions. We are no longer subject to U.S. Federal tax examinations for years before 2009. State jurisdictions that remain subject to examination range from 2008 to 2011. Foreign jurisdiction tax returns that remain subject to examination range from 2006 to 2011 for Canada and from 2006 to 2011 for Puerto Rico. We do not believe there will be any material changes in our uncertain tax positions over the next 12 months.


Our policy is to accrue interest and penalties on any uncertain tax position as a component of income tax expense. As of September 30, 2012, no such expenses were recognized during the quarter.


We provided for income taxes at an estimated effective tax rate of 34.5% and 32.6% for the nine months ended September 30, 2012 and 2011, respectively. The estimated effective tax rate for 2012 and 2011 is lower than the statutory rate due to permanent capital investment in our operations in the Dominican Republic in 2012 and 2011, which reduced the amount of dividends that we needed to provide for U.S. income taxes.


During the three and nine month periods ended September 30, 2012, we recognized a decrease to income tax expense of $0.2 million related to the filing of our 2011 Federal income tax return and our annual tax return to tax provision calculation adjustment which decreased our effective tax rates for the three and nine-month period ended September 30, 2012 to 31.9% and 32.6%, respectively.


During the three and nine month periods ended September 30, 2011, we recognized a decrease to income tax expense of $0.1 million related to the filing of our 2010 Federal income tax return tax return and our annual tax return to tax provision calculation adjustment which decreased our effective tax rates for the three and nine-month period ended September 30, 2011 to 29.7% and 31.7%, respectively.